The following production costs were incurred during one month operation of Smiley Teddy Ltd in production of 10000 smiley…

The following production costs were incurred during one month operation of Smiley Teddy Ltd in production of 10000 smiley…

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The following production costs were incurred during one month operation of Smiley Teddy Ltd in
production of 10000 smiley teddy bears: Transactions Amount $ Raw materials 28 000 Wages-
productive time 16 000 Wages-non-productive time 2 300 Electricity 1 100 Depreciation-plant
and machinery 4 250 Rent 2 500 Supervisor’s salary 3 000 Maintenance costs 500 Cleaning
materials 350 Components used 3 700 Security officer’s salary 820 Required: Calculate the
followings: a) Prime cost b) Conversion cost c) Total product cost d) Cost 1 teddy bear

Expert Answer:

Answer rating: 100% (QA)

To calculate the required values let s break down the costs as follows a Prime Cost Prime cost inclu
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